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You Are Here : Markets  |  Equity   |   Company Profile  |   Reports
Sanofi India Ltd(Industry :   Pharmaceuticals - Multinational)
 
BSE Code:500674NSE Symbol: SANOFIP/E  (TTM): 35.47
ISIN Demat:INE058A01010Div Yield %:1.46EPS   (TTM) :131.65
Book Value (Rs):817.0777247Market Cap (RsCr):10753.86Face Value (Rs) :10
  Change Company 

for the year ended December 31, 2015

Basis of preparation

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financials statements to comply in all material aspects with the accounting standard notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which revaluation was carried out.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1. Significant accounting policies:

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from the estimates and the difference is recognized in the statement of profit and loss of the relevant period.

Tangible and intangible fixed assets

Fixed assets are stated at cost (or revalued amounts, as the case may be) less accumulated depreciation/amortization and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Depreciation/amortisation

Leasehold land is amortized on a straight line basis over the period of lease. Depreciation on fixed assets is calculated on straight line basis using the rates arrived at based on the useful lives estimated by the management. The company has used the following life to provide Depreciation/amortization on its fixed assets:-

Description of Assets Useful life
Intangible Assets Amortised over:
Brand 120 Months
Software 36 Months
Marketing and technical rights for formulations 120 Months
Technical know how 60 Months
Goodwill 120 Months
Tangible Assets
Buildings 30 Years
Plant and Machinery 10 Years
Furniture and Fixtures 10 Years
Office equipments - Air Conditioners 5 Years
Office equipments - Others 10 Years
Computer 4 Years
Laptops 3 Years
Motor vehicles 8 Years
Leasehold Improvements Amortised over lease period

The management has estimated, supported by independent assessment by professionals, the useful lives of the following classes of assets.

The useful lives of plant and machinery are estimated as 10 years. These lives are lower than those indicated in schedule II of the Companies Act 2013. Further, the useful lives of office equipment and computers are estimated as 10 years and 4 years respectively. These lives are higher than those indicated in schedule II of the Companies Act 2013.

Research and development cost

Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized as an intangible asset when the company can demonstrate all the following:

• l The technical feasibility of completing the intangible asset so that it will be available for use or sale

• Its intention to complete the asset

• Its ability to use or sell the asset

• How the asset will generate future economic benefits

• The availability of adequate resources to complete the development and to use or sell the asset

• The ability to measure reliably the expenditure attributable to the intangible asset during development.

Following the initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized on a straight line basis over the period of expected future benefit from the related project, i.e., the estimated useful life of five years. Amortization is recognized in the statement of profit and loss. During the period of development, the asset is tested for impairment annually.

Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

Leases

Company is the Lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Company is the Lessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

Investments

Investments that are readily realisable and intended to be held for not more than a year from the date on which such investments are made are classified as current investments. These are valued at lower of cost or fair value (repurchase price or market value) on an individual item basis.

Investments other than current are classified as Non-Current Investments which are valued at cost less provision for diminution in value, other than temporary, if any.

Inventories

Inventories are valued as follows:

Raw Material and Packing Material

Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined using standard cost method adjusted for variances, which approximates actual cost based on weighted cost formula.

Work-in-progress and finished goods

Lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined using standard cost method adjusted for variances, which approximates actual cost based on weighted cost formula.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

Traded goods are valued at lower of cost and net realizable value. Cost Includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on a weighted average basis.

Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash flow statement comprise of cash at bank and in hand and short term investments with an original maturity of three months or less.

Foreign currency transactions

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transactions. Foreign currency monetary items are translated into rupees at the rate of exchange prevailing on the date of the balance sheet. Exchange differences arising on the settlement of monetary items or on reporting monetary items of Company at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognised as income or as expenses in the year in which they arise.

Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Forward exchange contracts not intended for trading or speculation purposes

The premium or discounts arising at the inception of forward exchange contract is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rate changes. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or expense for the year.

Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of Goods

Revenue from sale of goods is recognised when significant risk and rewards of ownership are transferred to customers, which is generally on dispatch of goods. Net sales are stated exclusive of excise duty, sales tax, VAT, Trade discount and are net of sales return. Excise duty deducted from revenue (Gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

Service Income

Income from service rendered is recognised based on the terms of the agreements and when services are rendered. Service income is net of service tax.

Interest

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend

Dividend Income is recognised when the companys right to receive dividend is established by the reporting date.

Others

Other income is accounted for on accrual basis except where the receipt of income is uncertain.

Retirement & Other employee benefits

(i) Long-term Employee Benefits

(a) Defined Contribution Plans

The Company has defined contribution plans for post employment benefits in the form of Superannuation Fund which is recognised by the Income-tax authorities and administered through trustees and/or Life Insurance Corporation of India (LIC). Further the Company also has a defined contribution plan in the form of a provident fund scheme for its staff and workmen at the Ankleshwar unit & Nepal and pension scheme under the Employee's Pension Scheme 1995 for its all employees, which are administered by the Provident Fund Commissioner.

All the above mentioned schemes are classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Company's contributions to Defined Contribution Plans are charged to the statement of profit and loss , when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.

(b) Defined Benefit Plans

The Company has for all employees other than Ankleshwar and Nepal Staff & Workmen, defined benefit plans for post employment benefits in the form of Provident Fund which is administered through trustees (treated as a defined benefit plan on account of guaranteed interest benefit). Further Company has defined benefit plan for post retirement benefit in the form of Gratuity which is administered through trustees and LIC for all its employees and pension for certain employees. Schemes of Provident Fund and Gratuity are recognised by the Income-tax authorities. Liability for Defined Benefit Plans is provided on the basis of valuation, as at the balance sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the Projected Unit Credit method.

(c) Other Long-term Employee Benefit

The Company has for all employees other long-term benefits in the form of Long Service Award and Leave Encashment as per the policy of the Company. Liabilities for such benefits are provided on the basis of valuation, as at the balance sheet date, carried out by an independent actuary. The actuarial valuation method used by an independent actuary for measuring the liability is the Projected Unit Credit method.

(ii) Actuarial gains and losses (for defined benefit and other long term benefit) comprise experience adjustments and the effects of changes in actuarial assumptions and are recognised immediately in the statement of profit and loss as income or expense.

(iii) Termination benefits are recognised as an expense as and when incurred.

Taxation

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by the same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax assets are reviewed at each balance sheet date.

Segment Reporting

Identification of segments

According to the Nature of Products and Services provided, the operations of the Company represent a single primary business segment relating to pharmaceuticals. Secondary segment reporting is performed on the basis of location of the customers.

Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Segment accounting policies

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Provisions and Contingencies

The Company creates a provision when there exist a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
2. SHARE CAPITAL
Authorised
23,500,000 (2014 : 23,500,000) Equity Shares of Rs. 10 each 2,350 2,350
2,350 2,350
Issued, Subscribed and Paid-up
23,030,622 (2014 : 23,030,622) Equity Shares of Rs. 10 each fully Paid-up 2,303 2,303
2,303 2,303

a) Shares held by holding and ultimate holding company

13,904,722 (2014 : 13,904,722) equity shares of Rs. 10 each fully paid are held by Hoechst GmbH, Germany, holding company and 4,865 (2014 : 4,865) equity shares of Rs. 10 each fully paid are held by Sanofi S.A., France ultimate holding company

b) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

December 31, 2015 December 31, 2014
Numbers Amount Numbers Amount
in Lacs in Lacs
At the beginning of the year and outstanding at the end of the year 23,030,622 2,303 23,030,622 2,303

c) Terms/rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 December 2015, the amount of per share dividend (including interim dividend of Rs. 18 (December 2014 : Rs. 10)) recognized as distributions to equity shareholders was Rs. 65 (December 2014 : Rs. 45).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

d) Details of Shareholders holding more than 5% shares in the company

December 31, 2015 December 31, 2014
No of Shares % of Holding No of Shares % of Holding
Hoechst GmbH, Germany 13,904,722 60.37 13,904,722 60.37
Reliance Capital Trustee Company Limited 1,075,925 4.67 1,287,005 5.59
Aberdeen Global Indian Equity Fund (Mauritius) Ltd 968,883 4.20 1,238,883 5.38

As per the records of the company, including its register of shareholder/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
3. RESERVES AND SURPLUS
Capital reserve 349 349
Securities premium account 204 204
Revaluation reserves
Balance as per last balance sheet 346 1,027
Less: Transferred to statement of profit and loss as reduction from depreciation 80
Less: Transferred to General Reserve 320 601
Closing Balance 26 346
General Reserves
Balance as per last balance sheet 31,002 27,765
Add: Transferred from surplus balance in the statement of profit and loss 3,215 2,636
Add: Transferred from Revaluation Reserve 320 601
Closing Balance 34,537 31,002
Surplus in the statement of profit and loss
Opening balance 114,380 103,022
Profit for the year 32,149 26,361
Less: Appropriations
Interim dividend on equity shares (per share Rs. 18 (2014 : Rs. 10)) 4,146 2,303
Proposed final dividend on equity shares (per share Rs. 47 (2014 : Rs. 35)) 10,824 8,061
Tax on dividend 3,047 2,003
Transferred to general reserves 3,215 2,636
Net surplus in the statement of profit and loss 125,297 114,380
160,413 146,281
4. OTHER LONG TERM LIABILITIES
Employee related liabilities 1,141
1,141
5. LONG TERM PROVISIONS
Provision for Employee Benefits (ref note No. 31)
Employees' retirement and other long term benefits 199 182
Employees' retirement benefits - Pension 33 41
Other Provision
Provision for Sales Returns (ref note No 34) 2,649 2,984
2,881 3,207

 

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
6. DEFERRED TAX LIABILITIES
Difference in depreciation and other differences in block of fixed assets as per tax books and financial books 15,622 8,649
Gross deferred tax liabilities 15,622 8,649
Employee retirement and other long term benefits 1,193 977
Effect of expenditure debited to statement of Profit & Loss in current year but allowed for tax purposes in following years 2,303 2,210
Provision for doubtful debts and advances 98 74
Gross deferred tax assets 3,594 3,261
Net Deferred Tax Liability 12,028 5,388
7. TRADE PAYABLES AND OTHER CURRENT LIABILITIES
Trade Payables
Total outstanding dues of micro enterprises and small enterprises (refer note 36 for details of dues to micro and small enterprises) 150 76
Total outstanding dues of creditors other than micro enterprises and small enterprises 22,411 32,610
22,561 32,686
Other current liabilities
Liability for capital goods 839 750
Employee related Liabilities 6,894 7,226
Advance towards sale of Fixed Assets 600
Statutory and other Liabilities 2,205 1,913
Security Deposits 2 1
Advances from customers and others 313 186
Unclaimed Dividend (ref note (a) below) 183 106
Others 174 222
10,610 11,004
33,171 43,690
(a) There are no amounts due and outstanding to be credited to Investor Education and Protection Fund
8. SHORT TERM PROVISIONS
Provision for Employee Benefits (ref note No. 31)
Employees' retirement and other long term benefits 3,711 2,739
Employees' retirement benefits - Pension 14 20
Other Provisions
Provision for Income Tax (Net of Advance Tax) 4,884 4,161
Proposed Dividend 10,824 8,061
Tax on proposed dividend 2,204 1,612
Provision for sales returns (ref note No. 34) 3,526 2,387
Other Provisions (ref note No. 34) 3,361 2,912
28,524 21,892

9. FIXED ASSETS

1. Intangible assets

Particulars Goodwill (1) Brand (1) Software (2) Marketing and technical rights for formulations Technical know-how (3) Total
Cost or valuation
At 1st January 2014 12,529 40,711 734 2,004 5,381 61,359
Purchases 141 141
Disposals
Other adjustments
Exchange differences
Borrowing costs
At 31st December 2014 12,529 40,711 875 2,004 5,381 61,500
Purchases 59 59
Disposals 38 38
Other adjustments
Exchange differences
Borrowing costs
At 31st December 2015 12,529 40,711 896 2,004 5,381 61,521
Amortization
At 1st January 2014 2,716 8,820 731 2,004 2,633 16,904
Charge for the year 1,254 4,070 40 1,017 6,381
Disposals
At 31st December 2014 3,970 12,890 771 2,004 3,650 23,285
Charge for the year 1,254 4,070 54 936 6,314
Disposals 38 38
At 31st December 2015 5,224 16,960 787 2,004 4,586 29,561
Net Block
At 31st December 2014 8,559 27,821 104 1,731 38,215
At 31st December 2015 7,305 23,751 109 795 31,960

Notes :

1) Remaining amortisation period upto 68 months (2014: 80 months)

2) Remaining amortisation period upto 16 months (2014: 28 months)

3) Remaining amortisation period from 4 to 31 months (2014: from 2 to 43 months)

9. FIXED ASSETS

2. Tangible assets

Particulars Freehold Land Leasehold Land Buildings & Waterworks(1) Leasehold Improvement Plant & Machinery Furniture & Fixtures Office Equipment Computers Motor Vehciles Total
Cost or valuation
At 1st January 2014 348 628 13,980 400 28,791 1,291 675 2,664 82 48,859
Additions 34 239 13 4,531 44 6 518 5,385
Disposals 1,963 149 12 30 379 2,533
Other adjustments
Exchange differences -
Borrowing costs -
At 31st December 2014 348 662 12,256 413 33,173 1,323 651 2,803 82 51,711
Additions 3,816 19,760 6,325 2,804 565 1,435 78 34,783
Disposals 1,435 59 362 282 153 297 2,588
Other adjustments
Exchange differences
Borrowing costs
At 31st December 2015 348 4,478 30,581 354 39,136 3,845 1,063 3,941 160 83,906
Depreciation
At 1st January 2014 92 5,536 267 14,391 727 448 1,942 56 23,459
Charge for the year 8 561 67 2,232 89 21 373 12 3,363
Disposals 1,205 120 8 26 373 1,732
At 31st December 2014 100 4,892 334 16,503 808 443 1,942 68 25,090
Charge for the year 11 1,062 45 2,696 336 122 696 19 4,987
Disposals 854 59 334 243 138 296 1,924
At 31st December 2015 111 5,100 320 18,865 901 427 2,342 87 28,153
Net Block
At 31st December 2014 348 562 7,364 79 16,670 515 208 861 14 26,621
At 31st December 2015 348 4,367 25,481 34 20,271 2,944 636 1,599 73 55,753

Notes :

1) Buildings include investments representing ownership of Office premises and Residential flats in co-operatives societies.

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
10. NON CURRENT INVESTMENTS
UNQUOTED EQUITY INSTRUMENTS
Trade Investments (At Cost)
(i) Bharuch Enviro Infrastructure Limited * *
2,188 (2014 : 2,188) Equity shares of Rs.10 /- each fully paid up.
(ii) Narmada Clean Tech Limited (Formerly known as Eco-Aqua Infrastructure Limited) 24 24
236,000 (2014 : 236,000) Equity shares of Rs.10/- each fully paid up. 24 24
* denotes figure less than a lac
11. LONG TERM LOANS AND ADVANCES
Unsecured, Considered good unless stated otherwise
Employee loans and advances 564 585
Loans and advances to related parties (refer Note 30)
Inter Corporate Loan [Unsecured but considered good, given against 16,500 2,300
Corporate guarantee by Sanofi S.A. (ultimate holding Company)]
Tender Security Deposits
Unsecured, considered good 111 112
Unsecured, considered doubtful 178 126
289 238
Less : Provision for Doubtful deposits (178) (126)
111 112
Advance tax (Net of Provision) 7,102 5,679
Capital Advances 420 573
Deposits Others 1,287 1,232
25,984 10,481

 

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
12. OTHER NON CURRENT ASSETS
Margin Money Deposits (Refer Note 15) 166 150
166 150
13. INVENTORIES (AT LOWER OF COST AND NET REALISABLE VALUE)
Raw Materials and packing materials (Including in transit Rs. 1,049 Lacs; 2014: Rs. 4,627 Lacs) 19,250 15,495
Work-in-progress 4,443 3,898
Finished goods / Traded goods (Including in transit Rs. 4,829 Lacs; 2014: Rs. 11,415 Lacs) 24,229 28,416
47,922 47,809
Details of Work-in-progress
Formulations 4,443 3,898
Details of Finished goods/Traded goods (Refer note 22) Formulations 24,229 28,416
14. TRADE RECEIVABLES
Unsecured, considered good unless stated otherwise
Outstanding over six months
Considered - good 315 275
- doubtful 88 71
403 346
Others
Considered - good 14,091 11,247
- doubtful
14,091 11,247
14,494 11,593
Less : Provision for doubtful debts 88 71
14,406 11,522

 

December 31, 2015 Rupees in Lacs December 31, 2014 Rupees in Lacs
15. CASH AND BANK BALANCES
Cash on hand * 1
With scheduled banks in
Current accounts 1,921 759
Bank Deposit with original maturity of less than three months 54,670 45,700
Unpaid dividend accounts 183 106
56,774 46,566
Other Bank Balances
Margin money deposits 543 468
Less : Amount disclosed under non current assets (Refer note 12) (166) (150)
377 318
57,151 46,884
Margin money deposit given as security
Margin money deposit with carrying amount of Rs. 543 lacs (2014 : Rs. 468 lacs) are subject to first charge to secure bank guarantees issued by bank on our behalf.
* denotes less than a lac
16. SHORT TERM LOANS AND ADVANCES
(Unsecured, considered good unless stated otherwise)
Advances recoverable in cash or in kind or for value to be received 1,141 288
Loans and advances to related parties (Refer note 30)
Advances recoverable in cash or in kind or for value to be received 207 320
Inter Corporate Loan [Unsecured, given against Corporate guarantee by Sanofi S.A (ultimate holding Company)] 16,500
Other Loans and Advances
Employee loans and advances
Unsecured, considered good 391 291
Unsecured, considered doubtful 19 19
410 310
Less: Provision for doubtful advances (19) (19)
391 291
Prepaid Expenses 469 544
Balances with Statutory Authorities 461 416
VAT/Service credit (input) receivable 824 432
Interest Accrued on Fixed Deposits 67 92
Advance payment to Suppliers 813 731
4,373 19,614

 

Notes December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
17. OTHER CURRENT ASSETS
Finished goods - Sample and Other Inventories 516 311
Tangible asset held for Sale* 142
516 453
* [Gross Value Rs. NIL (2014 : Rs. 393 Lacs) accumulated depreciation Rs. NIL Lacs (2014 : Rs. 251 Lacs)]
18. REVENUE FROM OPERATIONS (NET)
Sale of Products (gross) 209,904 192,304
Less: Excise Duty (Refer Note (i) below) 4,976 4,804
Sale of Products (net) 18(a) 204,928 187,500
Sale of Services 18(b) 12,278 8,543
Other operating income 18(c) 2,098 1,705
Revenue from operations 219,304 197,748

(i) Excise duty on sales amounting to Rs. 4,976 Lacs (2014 : Rs. 4,804 Lacs) has been reduced from sales in statement of profit & loss and increase of excise duty on inventory, sample etc. amounting to Rs. 336 Lacs (2014 : Rs. 213 Lacs) has been considered as expense in Note 24 of financial statements.

18(a) Details of Products sold
Formulations 204,668 187,345
Bulk Drugs 260 155
204,928 187,500
18(b)Details of Services rendered
Business Auxiliary Services 12,278 8,543
12,278 8,543
18(c) Other Operating Income
Sale of Scrap 97 102
Export Incentives 1,601 706
Indirect taxes set off/ refunds 389 403
Others 11 494
2,098 1,705

 

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
19. OTHER INCOME
Interest
Bank deposits 2,574 2,199
Inter corporate deposits 1,637 2,008
Others (Includes interest on income tax refunds, employee loans, etc) 675 852
Gain on disposal of fixed assets (net) 17
Rent 8 1,064
Exchange difference (net) 25
Provision no longer required written back (net) 76 103
Provision for doubtful debt written back (net) 114
Miscellaneous Income 142 73
5,137 6,430
20. COST OF MATERIAL CONSUMED
Inventory at the beginning of the year 15,495 16,786
Add: Purchases 67,147 62,426
Less: Inventory at the end of the year 19,250 15,495
Cost of Material Consumed 63,392 63,717
Details of Material Consumed
Active Pharma Ingredients 53,114 53,094
Packing Materials 10,278 10,623
63,392 63,717
Details of Inventory at the end of the year
Active Pharma Ingredients 16,960 13,225
Packing Materials 2,290 2,270
19,250 15,495

 

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
21. PURCHASE OF TRADED GOODS
Purchase of Traded Goods 34,126 48,787
34,126 48,787
Details of Purchase of Traded Goods
Formulations 34,126 48,787
34,126 48,787

22. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND TRADED GOODS

December 31, 2015 December 31, 2014 (Increase)/Decrease
Rupees in Lacs Rupees in Lacs Rupees in Lacs
Inventory at the end of the year December 2015
Traded Goods 15,220 23,624 8,404
Work-in-progress 4,443 3,898 (545)
Finished Goods 9,009 4,792 (4,217)
28,672 32,314 3,642
Inventory at the beginning of the year December 2014
Traded Goods 23,624 8,688 (14,936)
Work-in-progress 3,898 3,268 (630)
Finished Goods 4,792 5,258 466
32,314 17,214 (15,100)
Decrease / (Increase) in Inventory 3,642 (15,100)

23. EMPLOYEE BENEFITS EXPENSES

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
Salaries, wages and bonus 29,244 25,118
Contribution to provident fund / other funds (refer note 31) 2,189 2,119
Staff welfare expenses 1,895 1,587
33,328 28,824

 

December 31, 2015 December 31, 2014
Rupees in Lacs Rupees in Lacs
24. OTHER EXPENSES
Advertisement and sales promotion 4,910 4,945
Travelling and conveyance 9,243 7,599
Selling and distribution expenses 10,371 9,181
Power and fuel 3,142 3,985
Toll Manufacturing Charges 3,895 3,445
Excise duty on inventory 336 213
Legal and professional fees 4,840 4,197
Training & meetings 2,050 1,653
Repairs - building 317 282
- plant and machinery 1,046 944
- others 1,313 1,226
Insurance 788 652
Rent 1,751 1,770
Auxiliary and other materials 1,261 1,188
Rates and taxes 1,554 756
Stores and spares 431 456
Provision for doubtful debts and advance (net) 69
Exchange difference (net) 411
Loss on disposal of fixed assets (net) 80
Auditors remuneration (Including Service Tax)
Audit fees 65 62
Tax audit fees 5 4
Certifications 5 2
Out of pocket expenses 6 2
Donations (other than political parties) 96 38
Others 3,738 2,860
51,312 45,871
Less: Reimbursement of expenses* 12,401 8,239
38,911 37,632

* Reimbusement of expenses includes expenses recovered from common shared utilities and services from third parties. Further it also includes reimbursement of marketing support from fellow subsidiaries.

25. The tax year for the Company being the year ending March 31, the provision for taxation for the year is the aggregate of the provision made for the three months ended March 31, 2015 and the provision based on the profit for the remaining nine months up to December 31, 2015, the ultimate liability of which will be determined on the basis of the profit for the tax year April 1, 2015 to March 31, 2016.

26. Balance with customs and excise authorities includes excise and CENVAT deposit Rs.350 Lacs (2014: Rs. 525 Lacs) with toll manufacturers.

27. Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs: 1,897 Lacs (2014: Rs. 13,142Lacs).

28. Contingent Liabilities:

Particulars Dec 15 Rupees Lacs Dec 14 Rupees Lacs
Tax demands in respect of which*
a Tax authorities have appealed against Income tax orders which were ruled in favour of the Company 3,011 3,476
a Company's appeals are pending before appropriate authorities/ the Company is in process of filing an appeal with appropriate authorities 7,191 8,348

* Contingent liabilities in respect of pending tax assessments in relation to similar matters are not determinable and hence not disclosed.

29. The operations of the Company represent a single primary business segment relating to pharmaceuticals. Secondary segment reporting is performed on the basis of location of the customers.

(Rupees Lacs)
Particulars Dec 15 Dec 14
India Outside India Total India Outside India Total
Revenues (Net) 161,518 57,786 219,304 146,999 50,749 197,748
Carrying amount of segment assets* 150,270 11,103 161,373 143,199 8,692 151,891
Capital expenditure for the year 16,059 16,059 12,894 12,894

*Segment Assets includes the following

(Rupees Lacs)
Particulars Dec 15 Dec 14
Fixed Assets
i) Tangible Assets 55,753 26,621
ii) Intangible Assets 31,960 38,215
iii) Capital work in progress
Tangible Assets 1,778 20,781
Intangible Assets 428 207
Long term loans and advances 2,381 2,502
92,300 88,326
Current Assets
Inventories 47,922 47,809
Trade receivables - Domestic 3,303 2,830
Trade receivables - Export 11,103 8,692
Cash & Bank Balances 1,922 760
Short term loans and advances 4,307 3,021
Other Current Assets 516 453
69,073 63,565
TOTAL 161,373 151,891

30. Related parties:

i. Parties where control exists:

a) Hoechst GmbH, Germany, holding Company (holds 60.37% of the equity share capital as at December 31, 2015)

b) Sanofi S.A., France, ultimate holding Company

ii. Other related parties with whom transactions have taken place during the year:-

a) Fellow subsidiaries

Sanofi-Synthelabo (India) Private Limited Shantha Biotechnics Private Limited
Sanofi Lanka Limited Sanofi Chimie S.A
sanofi-aventis Pakistan limited Sanofi Pasteur India Pvt. Limited
Sanofi-Aventis Deutschland GmbH sanofi-aventis U.S.Inc.
Sanofi-Aventis Singapore Pte. Limited Sanofi-Aventis Recherche et Developpement S.A.
Francopia S.A.R.L. sanofi-aventis AUSTRALIA PTY LTD
Sanofi-Aventis Spa Aventis Pharma Limited. UK
Zentiva S.A sanofi-aventis Bangladesh Limited
Sanofi-Aventis Groupe S.A. Sanofi-Aventis Taiwan Co. Limited
Sanofi Winthrop Industrie S.A. Sanofi-Aventis SP Z.O.O
Sanofi-Aventis Hong Kong Limited Chinoin Pharmaceutical and chechemical Private Co.Ltd
Sanofi-aventis (Malaysia) SDN. BHD Zentiva K.S
Zentiva A.S.

b) Key management personnel of the Company for the year

Name Category of Directorship
Dr. Shailesh Ayyangar Managing Director
Mr. Ashwani Sood Executive Director from 21st October 2015
Mr. N. Rajaram Executive Director from 21st October 2015
Mr. Lionel Guerin Chief Financial Officer from 24th July 2015 and Whole Time Director from 21st October 2015
Ms. Virginie Boucinha Executive Director till 23rd July 2015
Mr. K. Subramani Company Secretary
Mr. Madhusudan Garimela Rao Executive Director upto 5th September 2014
Ms. Joanna Potts Executive Director upto 9th February 2014

c) Transactions during the year:

(Rupees Lacs)
Particulars Dec 15 Dec 14
Holding Company
Dividend
Sanofi S.A. 3 2
Hoechst GmbH 7,369 6,257
Fellow subsidiaries
Sale of Raw Material and Finished Goods
Sanofi-Aventis Singapore Pte. Limited 49,967 45,577
Others 4,491 3,904
Total 54,458 49,481
Purchase of Raw Material and Finished Goods
Sanofi-Aventis Singapore Pte. Limited 38,780 56,735
Francopia S.A.R.L. 10,156 7,622
Others 2,100 1,866
Total 51,036 66,223
Recovery of expenses
Sanofi-Aventis Singapore Pte. Limited 12,266 6,685
Others 250 182
Total 12,516 6,867
Income from Service rendered
Sanofi-Synthelabo (India) Private Limited 9,690 7,298
Sanofi Pasteur India Private Limited 1,302 959
Others 1,286 286
Total 12,278 8,543
Rent Income
Sanofi-Synthelabo (India) Private Limited 8 8
Refund of Inter Corporate Loan given
Shantha Biotechnics Private Limited 2,300 16,000
Sanofi Pasteur India Private Limited
Inter Corporate Loan given
Shantha Biotechnics Private Limited 13,000
Interest income (others) on loan/inter Company deposits given
Shantha Biotechnics Private Limited 1,567 1,790
Sanofi Pasteur India Private Limited 70 218
Purchase of Fixed Assets
Sanofi Chimie S.A 111
Zentiva K.S 12
Sanofi-Aventis Deutschland GmbH 80
Payment of Common shared expenses
Zentiva S.A 262 459
Sanofi-Synthelabo (India) Private Limited 77 80
Sanofi Winthrop Industrie S.A. 264 35
Sanofi Lanka Limited 95 69
Others 146 171
Total 844 814
Payment towards Intangibles under development
Sanofi-Synthelabo (India) Private Limited 81 69
Key Management Personnel
Remuneration
Dr. Shailesh Ayyangar 151 111
Mr. Madhusudan Garimela Rao 76
Ms. Joanna Potts 14
Mr. Ashwani Sood 22
Ms. Virginie Boucinha 148 172
Mr. Lionel Guerin 48
Mr. N. Rajaram 57
Mr. K. Subramani 74 67
Total 500 440

d) Outstanding as at December 31, 2015

(Rupees Lacs)
Particulars Dec 15 Dec 14
Fellow Subsidiaries
Trade Receivables
Sanofi-Aventis Singapore Pte. Limited 8,392 7,562
Sanofi-Synthelabo (India) Private Limited 1,128 834
Others 2,617 1,173
Total 12,137 9,569
Trade Payables
Sanofi-Aventis Singapore Pte. Limited 6,969 18,422
Sanofi-Aventis Spa 1,067 121
Francopia S.A.R.L. 1,383 2,043
Others 380 616
Total 9,799 21,202
Inter Corporate Loan Balance
Shantha Biotechnics Private Limited *16,500 16,500
Sanofi Pasteur India Private Limited 2,300
Total 16,500 18,800

*Inter Corporate loan given to Shantha Biotechnics Private Limited, a company in which Directors are interested

Inter Corporate loan balance as at December 31, 2015 - Rs. 16,500 Lacs (2014 - Rs. 16,500 Lacs)

Maximum balance outstanding during the year - Rs. 16,500 Lacs (2014 - Rs. 26,500 Lacs)

Rate of Interest 9.5% p.a.

The Loan has been given against corporate guarantee by Sanofi S.A. (Ultimate Holding Company).The maturity date of the same is 15th April 2017.

31. Employee Benefits

A) Defined Contribution Plans

The Company has recognised the following amounts in the statement of profit and loss for the year:

Particulars Dec 15 Dec 14
Rupees Lacs Rupees Lacs
i) Contribution to Employees' Provident Fund (Ankleshwar and Nepal) 25 27
ii) Contribution to Employees' Superannuation Fund 115 100
iii) Contribution to Employee's Pension Scheme, 1995 434 275

B) Post Employment Defined Benefit Plans

Valuations in respect of Gratuity, Pension Plan and Interest shortfall on Provident Fund have been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions:

Particulars Gratuity Pension Plan Provident Fund
Dec15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14
(a) Discount Rate (per annum) 8.01% 8.10% 8.01% 8.10% 8.01% 8.10%
(b) Expected Rate of Return on Plan Assets 8.01% 8.10%
(c )Salary Escalation rate# 8.00% for 3 years and 6% thereafter 6.00%
(d) Mortality Indian Indian Indian Indian Indian Indian
Assured LivesAssured LivesAssured LivesAssured LivesAssured LivesAssured Lives
Mortality Mortality Mortality Mortality Mortality Mortality
(2006-08) (2006-08) (2006-08) (2006-08) (2006-08) (2006-08)
Ultimate Ultimate Ultimate Ultimate Ultimate Ultimate
(e) Employees' turnover 1% 1% 1% 1% 1% 1%

#The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion, and other relevant factors, such as supply and demand in the employment market.

i) Change in Benefit Obligation

Particulars Gratuity Pension Plan Provident Fund
Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14
Liability at the beginning of the period 4,424 3,749 63 90 16,347 14,762
Interest Cost 359 337 5 8 1,415 1,118
Current Service Cost 297 236 * 1 697 701
Employees Contribution 1,391 1,237
Interest Gurantee
Benefits Paid (343) (606) (23) (26) (1,121) (1,599)
Transfer from previous employer's
Liability Transfer In 341 128
Liability Transfer Out
Provision for diminution in fair value of Plan assets
Actuarial (gain)/loss on Obligations 516 708 2 (10)
Liability at the end of the year 5,253 4,424 47 63 19,070 16,347
Funded benefit obligation 3,970 3,647 19,070 16,347
Non Funded Benefit Obligation 1,283 777 47 63

* denotes less than one lac.

ii) Fair value of Plan Assets

(Rupees Lacs)

Particulars Gratuity Pension Plan Provident Fund
Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14
Fair Value of Plan Assets at the beginning of the year 3,647 3,660 16,347 14,762
Expected Return on Plan Assets 295 331 1,415 1,118
Interest Shortfall paid by the Company Employer's Contributions 361 279 697 701
Employees Contribution 1,391 1,237
Benefits Paid (332) (606) (1,121) (1,599)
Transfer from Other Approved Funds 341 128
Provision for diminution in fair value of Plan assets
Actuarial gain/(loss) on Plan Assets (1) (17)
Fair Value of Plan Assets at the end of the year 3,970 3,647 19,070 16,347
Contributions expected to be paid to the Plan in 2016 825 707

iii) Actual Return on Plan Assets

Particulars Gratuity Pension Plan Provident Fund
Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14
Expected Return on Plan Assets 295 331 1,415 1,118
Actuarial gain/(loss) on Plan Assets (1) (17)
Actual Return on Plan Assets 294 314 1,415 1,118

iv) Amount Recognised in the Balance Sheet

Particulars Gratuity Pension Plan Provident Fund
Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14
Liability at the end of the year 5,253 4,424 47 63 19,070 16,347
Fair Value of Plan Assets at the end of the year 3,970 3,647 19,070 16,347
Difference 1,283 777 47 63
Amount Recognised in the Balance Sheet 1,283 777 47 63

v) Expenses Recognised in the Income Statement

Particulars Gratuity Pension Plan Provident Fund
Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14
Current Service Cost 297 236 * 1 697 701
Interest Cost 358 337 5 8 1,415 1,118
Expected Return on Plan Assets (295) (331) (1,415) (1,118)
Interest Guarantee
Net Actuarial (Gain)/Loss to be Recognised 517 726 2 (10)
Expense Recognised in Profit and Loss under personnel expenses 877 968 7 (1) 697 701

* denotes less than one lac.

vi) Amount for the current period and previous periods are as follows:

Particulars Gratuity Pension Plan Provident Fund
Dec 15 Dec 14 Dec 13 Dec 12 Dec 11 Dec 15 Dec 14 Dec 13 Dec 12 Dec 11 Dec 15 Dec 14 Dec 13 Dec 12 Dec 11
Defined Benefit
Obligation 5,253 4,424 3,749 3,233 2,818 47 63 90 145 168 19,070 16,347 14,762 12,768 11,983
Plan assets 3,970 3,647 3,660 2,937 2,773 19,070 16,347 14,762 12,574 11,484
(Surplus)/ deficit 1,283 777 89 296 45 47 63 90 145 168 194 499
Experience adjustment on benefit obligation
Net Actuarial (Gain)/Loss due to Experience 458 295 231 133 (77) 1 (11) (7) 18 (193) (467) 125
Net Actuarial (Gain)/Loss due to Change in Assumption
Experience adjustment on Plan Assets
Net Actuarial Gain/(Loss) due to Experience (1) (17) 41 6 56
Net Actuarial (Gain)/Loss due to Change in Assumption (2)

vii) Basis used to determine expected rate of return on assets

Expected rate of return on investments is determined based on the assessment made by the Company at the beginning of the year on the return expected on its existing portfolio since these are generally held to maturity, along with the estimated incremental investments to be made during the year.

viii) General descriptions of significant defined Plans

Gratuity Plan

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement in terms of provisions of the Payment of Gratuity Act or as per the Company's Scheme whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn base salary

Pension Plan

Under the Company's Pension scheme, certain executives are eligible for fixed pension for five years, depending on their level at the time of retirement on superannuation, death or early retirement with the consent of the Company.

Provident Fund

The Company manages the provident fund through a Provident Fund Trust for its employees (except Staff and Workmen at Ankleshwar and Nepal unit) which are permitted under The Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The Plan envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee, together with interest, are payable at the time of separation from service or retirement.

(ix) Broad category of Plan assets relating Gratuity and Provident Fund as a percentage of total Plan assets

Particulars Gratuity Provident Fund
Dec 15 Dec 14 Dec 15 Dec 14
Government of India securities 20% 23%
Bonds 44% 37%
Special Deposit Scheme, 1975 31% 34%
Other assets 5% 6%
Administered by Life Insurance Corporation of India 100% 100%
100% 100% 100% 100%

32. Earnings per share:

Particulars Dec 15 Dec 14
Numerator used for calculating basic and diluted earnings per share - profit after tax and before exceptional item (Rs. in Lacs) 23,764 19,705
Numerator used for calculating basic and diluted earnings per share - profit after tax after exceptional item (Rs. in Lacs) 32,149 26,361
Weighted average number of shares used as denominator for calculating basic and diluted earnings per share. 23,030,622 23,030,622
Nominal value per share (Rupees) 10 10
Basic and diluted earnings per share
Computed on the basis of earnings before exceptional items divided by weighted average number of shares (Rupees) 103.18 85.56
Computed on the basis of earnings after exceptional items divided by weighted average number of shares (Rupees) 139.59 114.46

33. Operating leases:

Future lease commitments in respect of non-cancellable operating leases:

Where Company is the lessee:

(Rupees Lacs)

Particulars Dec 15 Dec 14
Charged to Statement of profit and loss * 24 50
Not later than one year 17 15
Later than one year but not later than five years 25 6

*Cars are obtained on operating lease. The lease is for a period of five years for cars and one to three years for premises and there is no provision for renewal. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases.

In respect of cancellable operating leases, lease charges charged to Statement of profit and loss

(Rupees lacs)
Particulars Dec 15 Dec 14
Car Lease Charges** 239 224
Premises Lease Charges** 1,488 1,496
Total 1,727 1,720

** Premises and Cars are obtained on operating lease. There is no provision for renewal. There is no escalation clause in the lease agreement. There are no restrictions imposed by leased arrangements. There are no subleases.

Where Company is the lessor:

In respect of non-cancellable operating leases

(Rupees lacs)
Particulars Dec 15 Dec 14
Credited to Statement of profit and loss # 8 1,064
Not later than one year
Later than one year but not later than five years

Uncollectible minimum lease payments receivable at the balance sheet date Rs. Nil (2014 : Rs. Nil)

#The Company has leased out building on operating lease.

Details in respect of assets given on operating lease:

(Rupees lacs)
Particulars Dec 15 Dec 14
Gross carrying amount of buildings 379
Accumulated depreciation on cost and re-valued amount 237
Depreciation recognised in statement of profit and loss 61
Less: Transferred from revaluation reserve 59
Net depreciation as per Statement of profit and loss 2

In respect of cancellable operating leases, lease income is credited to Statement of profit and loss.

34. Other provisions:

Movements in provisions:

(Rupees Lacs)

Particulars Indirect tax Class of provisions Provision for Sales Returns Others Total
Balance as at January 1, 2015 856 5,371 2,056 8,283
(856) (4,140) (2,056) (7,052)
Amount provided during the year 5,401 449 5,850
( ) (5,678) ( ) (5,678)
Amount written back/paid during the year 4,597 4,597
( ) (4,447) ( ) (4,447)
Balance as at December 31, 2015 856 6,175 2,505 9,536
(856) (5,371) (2,056) (8,283)

Note: Figures in brackets are for the previous year.

i) Provision for indirect taxes represents differential excise duty, sales tax, custom duty and service tax in respect of which the claims are pending before various authorities for a considerable period of time and based on management's estimate of claims provision is made on prudent basis that possible outflow of resources may arise in future.

ii) Provision for sales returns are on account of expected date expiry and breakages returns based on historical trends.

iii) Other provisions on prudent basis are towards possible outflow of resources in respect of legal cases pending against the Company or in respect of contractual obligations of the Company.

35. Derivative Instruments and Un-hedged Foreign Currency Exposure:

Particulars of Derivatives Instruments as at Balance sheet date

Dec 15 Dec 14
Particulars of Derivatives Foreign currency Foreign currency Value (Rupees in Lacs) Foreign currency Value (Rupees in Lacs)
Forward Exchange contracts for the foreign exchange exposures of receivables on account of goods & services. EUR 4,000,000 2,881 1,500,000 1,151

Particulars of un-hedged Foreign Currency exposure as at Balance sheet date

Dec 15 Dec 14
Particulars Foreign currency Foreign currency Value (Rupees in Lacs) Foreign currency Value (Rupees in Lacs)
Trade Payables EUR 7,675,209 5,528 9,317,258 7,148
JPY 4,410,000 23
USD 405,938 269 733,403 463
GBP 6,000 6
NPR 139,215 1
SGD 97 *
CHF 5,520 4 4,560 3
HKD 44,774 4
AUD 7,190 3
Trade Receivables EUR 10,278,687 7,403 9,150,711 7,020
USD 1,237,839 819 824,728 521
Cash and Bank Balances EUR 399,739 288 23,837 18
USD 9,164 6

* denotes less than a lac

36. Micro and Small Enterprises

The Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

Details of dues to Micro and Small Enterprises as per Micro, Small and Medium Enterprise Development Act, 2006 (Rupees Lacs)
Dec 15 Dec 14
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year:
Principal Amount 150 76
Interest thereon remaining unpaid * *
Amount of interest paid in terms of section 16, of the Micro, Small and Medium Enterprise Development Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year
Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro, Small and Medium Enterprise Development Act, 2006. * 10
Amount of interest accrued and remaining unpaid at the end of each accounting year; and * 10
Amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprise Development Act, 2006 10

* denotes figure less than a lac

37. Value of imports on CIF basis:

(Rupees Lacs)
Particulars Dec 15 Dec 14
Raw and packing materials 28,400 28,514
Components, spares and auxiliary 40 49
Capital goods 1,598 849
Finished goods 27,158 43,569

38. Expenditure in foreign currency (on accrual basis)

(Rupees Lacs)
Particulars Dec 15 Dec 14
Commission 36 49
Traveling and conveyance 315 222
Salary and Wages 72 14
Legal and professional fees 18 25
Others 860 898

39. Earnings in foreign exchange (on accrual basis):

(Rupees Lacs)
Particulars Dec 15 Dec 14
FOB value of exports 53,115 47,879
Income from services rendered 1,286 286
Reimbursement of expenses & Market Support 12,401 6,787
66,802 54,952

40. Consumption of raw materials, packing materials spare parts and components

(Rupees Lacs)
Particulars Dec 15 % Dec 14 %
Raw Materials and packing materials:
Indigenous 33,717 53 27,163 43
Imported 29,675 46 36,554 57
Sub Total 63,392 100 63,717 100
Spare parts and components:
Indigenous 431 100 394 86
Imported 62 14
Sub Total 431 100 456 100
Total 63,823 64,173

41. Consequent upon the decision of the Supreme Court in the matter of prices of certain bulk drugs fixed by the Government of India under the Drug (Prices Control) Order, 1979, the Company paid an amount of Rs. 312 lacs in 1988 being the liability determined by the Special Team appointed by the Government. However, during 1990, fresh demands aggregating to Rs. 7,810 lacs alleged to be payable into the Drug Prices Equalisation Account (DPEA) were made by the Government on account of alleged unintended benefit enjoyed by the Company. The Government has also made certain claims for applicable interest. On a Writ Petition filed by the Company in 1991, the Bombay High Court passed an order whereby the demands were to be treated as show cause notices. The High Court directed the Company and the Government to furnish relevant data to each other based on which the Government was to rework the figures. The Government did not furnish the requisite data to the Company. In 1995, a further demand of Rs. 795 lacs was made by the Government.

In the meantime, a Committee was constituted by the Government to determine the liabilities of the Drug Companies. The Company filed written submissions with the Committee and contended during the personal hearing that in the absence of the Government furnishing the requisite data as directed by the Bombay High Court, the Company was not in a position to make an effectual presentation before the Committee.

In January 1999, the Company filed an Application before the Bombay High Court seeking directions to the Government to furnish the requisite data. The Application is pending. In the meantime, the Committee has deferred further hearing of the Company's case, until the Application is heard and decided by the Bombay High Court. In any event, the Company is contesting the above demand.

42. Dividend remittances in foreign currency:

(Rupees Lacs)
Particulars Dec 15 Dec 14
Dividend remitted in foreign currency
Final for year 2013 4,868
Interim for the year 2014 1,391
Final for year 2014 4,868
Interim for the year 2015 2,504
Number of non-resident shareholders 2 2
Number of shares held 13,909,587 13,909,587

All remittances are made in EURO.

43. During January 2015, Company has sold one floor of Hoechst House building for a consideration of Rs. 2,575 lacs and accounted net gain of Rs. 1,594 lacs (net of tax of Rs. 844 lacs). Further during November 2015, Company has sold Aventis House for a consideration of Rs. 11,100 lacs and accounted net gain of Rs. 6,791 lacs (net of tax of Rs. 3,594 lacs). The net gain arising from the sale of these assets has been indicated in exceptional item in statement of profit and loss for the year.

44. Disclosure on Corporate Social Responsibility as provisions of section 135 of the Companies Act, 2013 a. Gross amount required to be spent by the company during the year was Rs. 621 Lacs b. Details of amount spent during the year (included in note 24: Other Expenses)

Sr. No. Particulars Paid Yet to be Paid Total
(i) Construction/acquisition of any asset - - -
(ii) On purpose other than (i) above
1. Towards Reducing health inequalities around manufacturing sites 15 2 17
2. Towards Public Private Partnership with the Government of Maharashtra to impact outcomes of patients having non-communicable diseases. 32 19 51
3. Towards Promoting training amongst healthcare practitioners on critical healthcare and Cardiovascular disease risk identification 47 1 48
4. Towards Counselling patients to manage their diabetes and create awareness on early detection 384 34 418
5. Towards aid regarding detection of diabetes and give the benefit of care 43 6 49
6. Towards initiative to mentor underprivileged children 17 2 19
7. Towards Responding to Humanitarian Emergencies 48 - 48
8. Towards Fun centres to help children cope with the rigors of treatment 13 - 13
Total 599 64 663

45. Previous year's figures have been regrouped wherever necessary to conform to this year's classification.

Signatures to Notes 1 to 45
As per our report of even date For and on behalf of the Board of Directors of
Sanofi India Limited
For S R B C & CO LLP Dr. Vijay Mallya Chairman
Chartered Accountants S. Ayyangar Managing Director
ICAI Firm Registration No. : 324982E Lionel Guerin Chief Financial Officer and
per Vijay Maniar Whole Time Director
Partner S. R. Gupte Director
Membership No. 36738 Rangaswamy R. Iyer Director
A. K. R. Nedungadi Director
Mumbai : February 04, 2016 Ashwani Sood Director
N. Rajaram Director
K. Subramani Company Secretary
Mumbai : February 04, 2016

   

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